Australian infrastructure: some facts and figures

1 Australian infrastructure: some facts and figures2| Australian infrastructure: some facts and figures E Y 2 0 1 6 Australia s cities are the powerhouses of the national economy. W e need smart, sustainable and resilient cities to prov ide liv eable, productiv e and v ibrant places for Australians to liv e and work. T o thriv e and grow, smart cities need strong, ev idence-based planning and prioritisation of proj ects, the right owners`ih eodel$ innovative fundin_ and finan[in_$ and a strong infrastructure inv estment pipeline. T his document paints a picture of the economic importance of our cities, the pressures they face and the wav e of new smart city initiativ es in Australia.]

2 At hrovides interestin_ fa[ts and fi_ures on infrastru[ture funding and ownership models and the changing role of the priv ate sector in prov iding essential infrastructure. It also looks at Australia s ev olv ing PPP market and the future landscape for big he E Y Infrastructure Adv isory practice looks forward to discussing these issues with Summit speakers and a v i d L a r o c c a E Y O ceania Partner H ead of Infrastructure Adv isory F o r e w o r d1 Australian infrastructure: some facts and figures E Y 2 0 1 6 | m a r t c i t i e s a r e v i t a l t o o u r e c o n o m i c p r o s p e r i t yP a g e 2.]]

3 Ities are t`e hower`ouses of our national e[onoeq Zut fa[e several hressures$ including population growth, housing affordability and growing congestion. W`at are Keart ;ities7 9nd will t`eq address t`e [`allen_es fa[in_ our [ t r o n g i n f r a s t r u c t u r e p l a n n i n g a n d p r i o r i t i s a t i o n P a g e 6 NiZrant$ heohle%[entri[ and [onne[ted [ities need t`e ri_`t hrobe[ts funded at t`e right time. O rganisations such as Infrastructure Australia hav e raised the bar in infrastructure decision making. ?ettin_ hrobe[t e[onoei[s ri_`t is vital& At is often t`e hrobe[ts t`at [osts t`e least that giv e the best returns.]]]]]]]]]]]]]]]]

4 ;itq hlannin_ is Ze[oein_ eore heohle [entri[$ en[ahsulatin_ a varietq of fa[ets of life where we liv e, work and play, how we mov e around a city, how we engage with each other and the time we spend in open h e r i g h t f u n d i n g a n d o w n e r s h i p m o d e l P a g e 8 Anfrastru[ture owners`ih in 9ustralia `as Zeen _raduallq transforein_ over t`e past decades, leav ing more of our assets in priv ate hands. Hrivate `oshitals are vital to 9ustralia s `ealt` se[tor$ eacin_ uh bust under `alf of all Australia s hospitals, with hospital funding coming from a number of different gov ernment and non- gov ernment sources.]]]]]]]

5 9ustralia `as a eabor s`orta_e of so[ial `ousin_& L`ere are lon_ waitlists for so[ial housing across Australia yet gov ernment funding for social housing is falling. An[reasin_lq$ 9ustralia s ener_q infrastru[ture is Zein_ `eld in hrivate `ands& 9ustralia s urZan water se[tor lar_elq reeains huZli[lq owned and oherated$ Zut it has a large degree of priv ate sector inv olv ement. Hrivate se[tor owners`ih of our transhort assets is _rowin_& :ut soee asset classes hav e more priv ate sector inv olv ement than others, with airports and ports leading the .A u s t r a l i a s e v o l v i n g P P P m a r k e tP a g e 18 9ustralia s HHH earcet `as _rown si_nifi[antlq in t`e hast de[ade& Harti[ihant countries in Australia s PPP market has doubled.]]]]]]]]]]

6 T he av erage v alue of transactions has increased 1 2 i g i n f r a s t r u c t u r e t r a n s a c t i o n s P a g e 19 L`e transitions lands[ahe in 9ustralia is uid& We `ave seen soee lar_e deals close in recent years with more in the pipeline, including Port of M elbourne and E ndeav our E h a t s i n t h i s d o c u m e n t ? L`is do[mment provides ^a[ts and figmres on t`e ^oddowing fiv e i s s u e s2| Australian infrastructure: some facts and figures E Y 2 0 1 6 Australia s cities are the powerhouses of the national economy v ital to our well- being and economic prosperity. ;ities `ouse t`e eaboritq of 9ustralia s boZs and eu[` of the nation s key economic infrastructure.]]]]

7 In fact , 8 0 % of Australia s economic activ ity is concentrated in and near our Australia s cities currently contribute $ 8 5 4 billion to the national economy, and this is proj ected to almost double to $ 1 . 6 trillion by 2 0 3 1 .2 P r o j e c t p o p u l a t i o n i n A u s t r a l i a s c a p i t a l c i t i e s1 ?rattan Anstitute$ *(),2 Australian Infrastructure Audit, Infrastructure Australia, 2 0 1 5As cities shape up to be the pillars of our national economy, they face sev eral pressures: ?rooing hohulations :q *(+.$ four in everq five people residing in Australia will liv e in our cities.)

8 Perth will be Australia s fastest growing city ov er the next two decades, growing at 1 1 times the rate of New Qorc ;itq 3, six times the rate of London4 and four times that of H ong W`en [oehared to New Qorc s hohulation fore[ast eade Zq: L`e ;itq of New Qorc <eharteent of ;itq Hlannin_$ *()+4 W`en [oehared to Dondon s hohulation fore[ast eade Zq: ?reater Dondon Authority, 2 0 1 65 W`en [oehared to @on_ Con_ s hohulation fore[ast eade Zq: ;ensus and Statistics Department H ong Kong Special Administrativ e R egion People s JehuZli[ of ;`ina$ *()(S m a r t c i t i e s a r e v i t a l t o A u s t r a l i a s e c o n o m i c p r o s p e r i t y 20362016S y d n e y M e l b o u r n e B r i s b a n e P e r t h A d e l a i d e C a n b e r r a H o b a r t205602 0 0 0 0 0 04 0 0 0 0 0 06 0 0 0 0 0 08 0 0 0 0 0 01 0 0 0 0 0 0 0 Kour[e: 9ustralian :ureau of Ktatisti[s$ *()+$ Hohulation Hrobe[tions$ [at& no& +**&3 Australian infrastructure.)]]]]]]]]]]]

9 some facts and figures E Y 2 0 1 6 | Aging hohulation T he population aged 7 5 or more years is expected to rise by 4 million from 2 0 1 2 to 2 0 6 0 , increasing from about 6 . 4 % to 1 4 . 4 % of the Jising congestion ;oeeutin_ into [ities is Ze[oein_ in[reasin_lq diffi[ult& Wit`out a[tion$ t`e av oidable social cost of congestion in Sydney is expected to grow from $ 6 . 1 2 billion in 2 0 1 5 to $ 1 2 . 6 0 billion in 2 0 3 0 .7 @ousing affordaZilitq and urZan shraol In Australia s cities especially Sydney, M elbourne and Perth rapid house price growth in inner city areas has made liv ing near work unaffordable for many.]]]]]

10 O n av erage, Australian households spend more than 2 7 % of their monthly income on mortgage H ousing affordability challenges hav e pushed people to _reenfield develoheents in frin_e suZurZs$ _ivin_ rise to lower- density liv ing and costly new infrastructure a[ross 9ustralia are reshondin_ to these challenges with a wav e of new initiativ es to build smarter and stronger cities. 6 Hrodu[tivitq ;oeeission$ 9n 9_ein_ 9ustralia: Hreharin_ for t`e >uture$ 2 0 1 3 7 :ureau of Anfrastru[ture$ Lranshort and Je_ional =[onoei[s$ Anforeation Sheet 7 2 , 2 0 1 58 T he M oody s Australian H ousing Affordability M easure, 2 0 1 5L`e ;oeeonwealt` ?]]]]]